Investing in mobile homes inside existing mobile home parks can be a lucrative opportunity that often goes overlooked by many investors. In this article, we will explore eight ways to make money with mobile homes in these parks. It’s important to note that we are discussing the purchase and sale of the mobile homes themselves, not the land they sit on.
1. Buying and Renting
While many mobile home parks may not allow you to rent out mobile homes, there are exceptions. Some parks near military bases or in specific regions may permit renting. In such cases, consider renting the room if it’s financially advantageous, especially for purposes like student housing, transient or migrant housing, or housing for oil workers. Ensure you check with local park managers to understand their rental policies.
Pro Tip: Always clarify your market and make multiple offers to sellers to secure mobile homes at prices below retail.
2. Buying and Selling for Cash
Every day, individuals across the country buy and sell mobile homes for cash. As an active mobile home investor, you should aim to purchase these homes at a price significantly below retail. You can sell them to private buyers or arrange bank financing. The key to success in this strategy is understanding the market and consistently making multiple offers.
3. Buying and Selling via Payments
Some sellers may choose to sell their mobile homes within the park through down payments and monthly payments from tenant-buyers. It’s essential that all buyer-applicants are approved by the park and meet the necessary background/application requirements. Additionally, an interest rate may be applied to the balance being paid.
Pro Tip: Ensure all paperwork and applicants adhere to local and national seller financing rules and guidelines.
Similar to the real estate market, wholesaling mobile homes in mobile home parks involves obtaining a purchase contract for a mobile home and then selling that contract to another investor or end-user buyer for a profit. While the profit margin may not always be substantial, high-demand areas can yield more significant assignment fees.
5. Bird Dogging
As a bird-dog, your role is to help investors find mobile homes for sale that fit their criteria. You identify for-sale-by-owner (FSBO) properties and match them with active mobile home investors. To succeed, it’s crucial to know the specific types and criteria each investor is looking for.
Pro Tip: Your compensation typically depends on closed deals, so ensure your leads are followed up on.
6. Adding Homes to the Community to Resell
Many mobile home parks have vacant spaces for additional homes. Some offer incentive programs for park-approved homeowners who are willing to move in a park-approved mobile home. As an investor, you can find sellers who need their mobile homes relocated and sell them to new buyers. This process can be profitable if you leverage move-in incentive programs.
Pro Tip: When speaking to community managers, inquire about move-in incentive programs and the types of mobile homes the park is willing to accept.
7. Selling Directly to the Park
In cases where you have a more expensive mobile home that must be moved after purchase, consider selling it directly to a local mobile home park. Ensure you understand what each park is looking for in a used mobile home and be prepared to show them pictures for approval. Parks usually pay you before handling the move, permits, and setup themselves.
8. Moving Unwanted Mobile Homes from One Park to Another
Sometimes, mobile home park owners want older or less attractive homes removed from their communities to make room for newer, more profitable homes. If a mobile home still has value, you can help move it to another location for resale or rent. Check with local mobile home movers and permit offices to verify the requirements for moving homes in your area.
The Bottom Line
Investing in mobile homes within mobile home parks offers various ways to generate income. While some strategies may be more realistic and profitable than others, success in this venture requires dedication, market knowledge, and active involvement. Always be aware that the real estate market can be unpredictable, so make informed decisions and take daily actions to achieve your financial goals. If you have questions or need guidance, reach out to experienced investors in the field for assistance. Mobile home investing can be a rewarding journey when approached with diligence and a commitment to learning and growing in the field.